BRUSSELS, Dec 18 (Reuters) – According to a draft document seen by Reuters, which could still change, European Union leaders will ask EU institutions to urgently adopt instruments to establish a reparations loan backed by cash balances linked to Russia’s frozen assets.
The draft lists several conditions for the loan, including full respect for the contractual obligations of asset holders, equal treatment, compliance with bilateral investment treaties, and a requirement that the funds support both EU and Ukrainian defence industries.
The draft also said EU leaders want the reparations loan to provide financial support for Ukraine starting in the second quarter of 2026, including its military needs.
In the document, the text about the reparations loan was in square brackets which means the proposal had not yet been adopted and may still change as talks go on.
(Reporting by Jan Strupczewski, Writing by Charlotte Van Campenhout, Editing by Sudip Kar-Gupta)
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